Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Previous month, Fragrance Group and Global Premium Hotels authorized an additional contract with Accor to open 2 new-build properties with three new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, that will certainly be the biggest Mövenpick lodging in the Asia Pacific location. It will certainly also house Mövenpick Living Singapore, a 37-key lodging intended at tourists seeking lengthened stays.
Fragrance Group can possibly redevelop Katong Square right into a new hotel following one of the Accor labels. Nevertheless, Katong Plaza lies in top District 15 in the east and only 120m from the Marine Parade MRT Stop on the Thomson-East Coast Line and the Parkway Parade mall.
The various other real estate, based at Waterloo Street, will be a brand-new 502-room lodging under the Handwritten Collection brand of Accor. It is a redevelopment of the previous Min Yuan Apartments which Fragrance Team got en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it obtained in November 2018 for $131.1 million. Both 999-year leasehold sites were joined together, and URA authorization was acquired for redevelopment right into a 500-room resort.
The existing advancement covers a complete land area of 34,044 sq ft with a total plot ratio of 3.0. This works out to a highest gross floor area of 102,132 sq ft.
Property developer Fragrance Group has gotten Katong Plaza in Marine Parade for $180 million. The purchase price converts to a land rate of $1,809 psf per plot ratio (psf ppr), consisting of the land improvement fee.
Nava Grove MCC Land and Sinarmas Land
Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Road. It has 132 strata retail units and 14 non commercial residences. Proprietors of the retail units will be obtaining earnings varying from $502,000 to over $6 million, whereas household owners will certainly be acquiring in between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of investment sales that agented the agreement.
“Our company believe this purchase will boost trust in the cumulative sale sector as developers continue to go after desirable land plots,” states Lian.
Katong Plaza is beside Roxy Square and the Grand Mercure Roxy Singapore. Different hotels close such as Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
Fragrance Group and its hospitality arm, Global Premium Hotels, are controlled by billionaire real property real estate investor and hotelier James Koh, the chairperson of both companies. Global Premium Hotels has a collection of companies, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and international hotels and resort group Accor locked up to open up 13 brand-new ibis Budget hotels, which were in the past Fragrance-branded resorts, along with generating the ibis Styles and Mercure brand names.
It is currently zoned for business and residential use however has gotten URA approval for resort usage. Lian projections that the new hotel could generate between 300 and 340 rooms.